After Haringey Council, a single, impoverished council, voluntarily, and recklessly, rushed into taking on responsibility for trusteeship of the Palace from the London-wide GLC, in 1980, there was a fire. Some of the interior was destroyed although all the eastern parts were saved.

Front cover of Palace Sale Marketing Pack.

Insurance helped the Palace to be rebuilt but those responsible allowed the finances to become completely out of control. Eventually the Great Hall and Palm Court were rebuilt, and a new West Hall constructed, but the project was £30m over budget. Haringey officers said that the charity funds must pay for this and the Palace be privatised and sold but the Charity Commission said no: the overspending was completely unauthorized and the charity’s funds could not be charged for it. In 1991 the Attorney-General dramatically intervened on behalf of the beneficiaries of the charity (the public).

“The Council’s proposals for the future use of Alexandra Park and Palace have been prepared and put forward on the basis that the Charity is carrying a debt [to Haringey Council] of some 30m ...The Attorney-General does not believe that it is possible for the Council as Trustee to make a proper and informed decision about the long-term future of the Park and Palace without knowing the approximate amount ..for which the Charity is [actually] liable.”

Letter from TS on behalf of A-G to Haringey Borough Solicitor, 4th December 1991

However, Haringey refused to accept this ruling (although they could not proceed with the commercial development).  As they were themselves trustee, they simply paid themselves interest of up to 1m a year out of the rebuilt Palace’s funds, sending the yearly accounts into the red – and adding this to the amount they said was owed by the Palace! And they continued to plan for a sale of the whole Palace, hoping eventually that everyone would forget the A-G’s ruling, and appointing the very council middle manager, to whom they had given the job of project-managing the sale, Keith Holder, as General Manager! The Palace was run as inefficiently as they dared, and the associated charities within gradually winkled out, ready for a sale with vacant possession to a developer.

By political pressure, they managed to change the Acts of Parliament governing the Palace and Park and tried to stop the Palace accounts being independently audited. But the Minister responsible promised Parliament

that the change would not allow commercial development of the Palace. It seems the management of the Palace and their legal advisers always intended to break this promise, and they now have.

Alexandra Palace Stamp World Exhibition
London 1990

How to flog a Palace for Peanuts
A quick guide

• Make sure it ends up with a single local authority, which is also incompetent.
• Never make any meaningful investments into the asset
• Never try to find business partners who might make it a success
• Make sure it falls into disrepair and runs a large deficit by employing incompetent management while paying them extortionate wages over a long time.
• While you are at it, make sure that all the discussions and decisions within this regard ARE SECRET, so no one could challenge your decisions, including trustees on the board of the charitable trust, who might have a conscience and object to your plans.
• Run a continuous propaganda campaign telling the public that the high council tax you are charging them, is a result of money draining into the Palace black hole. This will ensure the public support for your plan to flog the asset.
• Of course you should have no intention of reducing the council tax once the deal is done, as you might need the extra funds to pay other incompetent officers to run the next thing you want to flog.
• When you reach a point of no return neglecting the asset for years, try and flog it for peanuts
• If you are unsuccessful in leasing the national heritage white Ally-Phanty for only 22 years, as you are permitted by law: –
• Get Parliament to change the law so you could flog it off with 125 years lease.
• Once this is done give an early warning to your preferred bidder especially if they promise to retain your job and excellent pay.
• Do nothing for a while, wait till your preferred bidder is well and truly ready with their bid.
• Now the time is right to advertise your ‘flog it plan’, so that you are seen to fulfil your legal obligation.
• Make sure no expense is spared on advertising it. Hire a top agency to design and produce an expensive media pack and an ‘unheard of’ advertising campaign. This will ensure no one will ever ask you to repeat the exercise or complain you did not make the appropriate effort in attracting investment. You will be able to rush it through with no effective opposition.
• Make sure the time line for submitting bids is as short as possible, so no other bidders have any realistic chance to come up with any alternative offers of how to spend £50 mil of their money.
• If you are unfortunate and such a bidder suddenly materialises, choose presentation dates they can’t make, and never change your mind about it or show any flexibility in the matter.
• Ensuring there is only one valid bid on the table, will allow you to defend flogging the palace for peanuts, without any conditions to safeguard the future of any of the historic parts of the place. (Home to the world first TV broadcast and BBC TV studio. Also home to the finest concert Pipe Organ in Europe)
• Since the deal will have to be approved by the Charity Commission before the contract is signed and sealed and since the Commission will have to consult the public, make sure the contract and its terms are a guarded secret! So no one could ever be able to make any valid comments based on facts.
• Hold your breath and hope no-one notices. Et voila, your Palace is Flogged for Peanuts!